Multistate settlement
Definition
A multistate settlement is a single agreement that resolves legal claims multiple states' attorneys general bring together, usually jointly, against the same company or industry. States coordinate so a defendant faces one negotiated resolution instead of separate lawsuits in every state.
Why it matters
Multistate settlements give state attorneys general leverage no single state could match alone, since a company facing dozens of state AGs at once has far more incentive to negotiate than one facing a single state's case. That collective leverage is also why settlement terms, not just the dollar figure, often reshape an entire industry's practices nationwide.
Seen in the wild
The 1998 tobacco Master Settlement Agreement between the major cigarette manufacturers and attorneys general from 46 states remains the largest and most cited multistate settlement, alongside four states that had settled separately just before it.1